A tech-heavy portfolio with significant exposure to the S&P 500 and low diversification

Report created on Aug 5, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is heavily weighted towards the S&P 500 with an 85% allocation in a broad-based ETF and an additional 15% in a technology sector ETF. This composition suggests a strong focus on U.S. equities, particularly within the technology sector, which represents 44% of the portfolio. While this concentration may capitalize on the growth potential of tech stocks, it also exposes the portfolio to sector-specific risks and limits diversification across other sectors and geographies.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.63%, with a maximum drawdown of -33.31%. These figures suggest robust growth, albeit with significant volatility, as evidenced by the steep drawdown. The fact that 90% of returns came from just 39 days highlights the portfolio's dependency on short-term gains, which can be risky for investors not prepared for sudden market movements.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 874.1% in portfolio value, suggesting strong growth potential. However, the reliance on historical data means these projections cannot guarantee future performance, especially in a portfolio with high sector concentration, where unforeseen industry-specific downturns could heavily impact returns.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, with no allocation to bonds, real estate, or other asset classes that could provide income or reduce volatility. This lack of diversification across asset classes can increase the portfolio's sensitivity to stock market fluctuations, potentially leading to higher volatility.

Sectors Info

  • Technology
    44%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

The technology sector dominates this portfolio, making up nearly half of the allocation. While the tech sector has historically provided high returns, this concentration increases risk, especially during market corrections or when facing regulatory changes. The minimal exposure to other sectors further compounds this risk, limiting the portfolio's ability to hedge against tech-specific downturns.

Regions Info

  • North America
    99%

With 99% of assets allocated to North America, the portfolio is highly exposed to the economic and political risks of this region. A broader geographic distribution could mitigate some of these risks, offering protection against region-specific downturns and capitalizing on growth opportunities in other markets.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    1%

The focus on mega and big-cap stocks, which comprise 83% of the portfolio, suggests a preference for established, less volatile companies. However, the minimal exposure to small and medium-cap stocks limits potential for high growth rates these companies can offer, albeit with increased risk.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

While the portfolio shows strong past performance, its heavy reliance on the tech sector and the S&P 500 could be optimized for risk-adjusted returns. Considering the Efficient Frontier, diversifying across more sectors, asset classes, and geographies could potentially offer similar returns with reduced volatility, making the portfolio more resilient to sector-specific shocks.

Ongoing product costs Info

  • iShares S&P 500 USD Information Technology Sector UCITS 0.15%
  • iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
  • Weighted costs total (per year) 0.12%

The total expense ratio (TER) of 0.12% is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns caused by fees. Keeping costs low is a crucial aspect of maximizing net investment returns over time.

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